Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Korvanis Corporation operates a Medical Services Department for its employees. Charges to the company's operating departments for the variable costs of the Medical Services Department

image text in transcribed
image text in transcribed
image text in transcribed
Korvanis Corporation operates a Medical Services Department for its employees. Charges to the company's operating departments for the variable costs of the Medical Services Department are based on the actual number of employees in each department Charges for the fixed costs of the Medical Services Department are based on the long-run average number of employees in each operating department Variable Medical Services Department costs are budgeted at $55 per employee, Fixed Medical Services Department costs are budgeted at $651000 per year . Actual Medical Services Department costs for the most recent year were $106,300 for variable costs and $657,000 for fixed costs. Data concerning employees in the three operating departments follow: Cutting 508 Milling 300 Assembly 915 Budgeted number of employees Actual number of employees for the most recent year Long-run average number of employees sos 870 400 580 815 1,450 Required: 1 Determine the Medical Services Department charges for the year to each of the operating departments ---Cutting. Milling, and Assembly 2. How much. If any of the actual Medical Services Department costs for the year should be treated as a spending variance and not charged to the operating departments? Complete this question by entering your answers in the tabs below. Actual number of employees for the most recent year Long-run average number of employees Sos 870 S80 835 1,450 Required: 1. Determine the Medical Services Department charges for the year to each of the operating departments --Cutting, Milling and 2. How much. If any of the actual Medical Services Department costs for the year should be treated as a spending walance and not charged to the operating departments? Complete this question by entering your answers in the tabs below. Required Required 2 How much of any of the actual Medical Services Department costs for the year should be treated as a spending variance and not changed to the operating departments

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Tony Davies, Ian Crawford

1st Edition

0273723073, 9780273723073

More Books

Students also viewed these Accounting questions

Question

Explain global human resource management.

Answered: 1 week ago

Question

Describe the grievance procedure in a union environment.

Answered: 1 week ago

Question

Discuss whistleblower protection under OSHA.

Answered: 1 week ago